The 2024 Beijing International Auto Show has opened, and Tesla China and Li Auto took the lead in attracting a wave of traffic with a price reduction model. On April 21, Tesla cut prices by 14,000 yuan for all models in China, including Model Y, Model S, Model X and Model 3. On April 22, Li Auto also made a rare official announcement of price cuts: the 2024 Ideal L7, L8, L9 and MEGA adopt a new price system, with price reductions for many models ranging from 18,000 to 30,000 yuan.
According to incomplete statistics, since April, nearly 40 domestic auto brands and a total of 128 car series have announced discounts, subsidies or price reductions, and among the price reduction models, mainly new energy vehicles. And is the continuous price war really conducive to the healthy development of the auto market?
The low cost of owning a car is the high value
The "price war" between car companies has a stimulating effect on sales in the short term, but in the long run, the continuous decline in new cars has also made used cars less valuable. At this time, we have to mention a concept called the cost of owning a car: the cost of owning a car = the purchase price - the selling price of the second-hand car, the closer the selling price of the second-hand car is, the lower the cost of owning a car. Therefore, for the average consumer, the value of the entire life cycle of the vehicle is more important.
Apple and Tesla's little secret to maintaining a high retention rate
Apple's mobile phone has always been at the top in the entire mobile phone industry, and Tesla, as a leading company in the new energy vehicle industry, also has a high value retention rate for its products. In addition to the hard power of the product itself, the repurchase policy launched by the brand out of its full recognition and lasting confidence in the residual value of the product also affects the value retention rate of the product.
Apple's annual replacement program for users allows users to buy a new iPhone with at least 50% off the original price by redeeming their old iPhone during the trade-in qualification period. Tesla, on the other hand, offers Model S/X users a 3-year 45% hedging buyback policy, and consumers can use 45% of the vehicle's ticket price to sell to Tesla after three years of use.
Apple and Tesla are not as good as the value of the king of the king ID.3
Apple and Tesla's hedging buyback policies have improved the value retention rate of their products to a certain extent. However, if you want to talk about who is the king of value preservation, it has to be SAIC Volkswagen, which has been deeply involved in China for 40 years.
As early as March 3 this year, SAIC Volkswagen launched a financial portfolio policy of zero-pressure down payment, monthly payment and three-year hedging repurchase for its compact pure electric sedan ID.3. In order to further reduce consumers' concerns about the long-term value preservation of electric vehicles, SAIC Volkswagen launched the ID.Care value preservation package on April 20, providing users who purchase the ID.3 with a 6% discount for 3 years. 25 At the Beijing Motor Show press conference, SAIC Volkswagen also extended this policy to the entire ID. family of products.
Specifically, ID.3 users can enjoy a 6% discount on the vehicle fare after meeting the conditions of ≤ 90,000 kilometers in 3 ≤years and 30% of the vehicle fare in 3 years. In comparison, Tesla's Model S/X can only give a 45% hedging repurchase commitment after three years, and in terms of conditions, Tesla is 15,000 kilometers per year, and ID.3 doubles the mileage figure, basically covering 95% of non-online car-hailing users.
In addition, in terms of the conditions for enjoying the hedging repurchase rights, Tesla stipulates that structural injuries cannot enjoy the hedging repurchase rights, while SAIC Volkswagen can enjoy the rights and interests if the cumulative claims are made ≤ 30% of the vehicle fare. At the same time, Tesla will not be entitled to rights except for structural damage, and other damages will be reduced accordingly in accordance with Tesla's direct sheet metal painting center parts and working hours standards. SAIC Volkswagen's hedging repurchase is not only under relaxed conditions, but also the guarantee method is also borne by the insurance company.
In terms of the price it costs, Apple's Apple Care+ service requires nearly 20% of the cost of an iPhone, and SAIC Volkswagen ID.Care can use the 3000 ID. beans that come with the purchase of the ID.3 to redeem it, which is equivalent to a limited-time delivery (you can enjoy it for a limited time until June 30).
Compared with Apple's high cost of hedging services and Tesla's harsh hedging repurchase conditions, SAIC Volkswagen ID.3 is not only affordable to the people, but also has a more relaxed and friendly hedging buyback policy. Such quality value and brand strength are actually the result of SAIC Volkswagen's 40 years in China, combining global resources and local advantages, and using long-term thinking to guide practice in the current market environment. At the same time, SAIC Volkswagen ID.Care, an after-sales service system that is closer to consumers, will also bring users a more value-added product experience and high value throughout the life cycle.